Chapter 7 E-Business Systems

Chapter 7
e-Business Systems
McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.
Learning Objectives
 Give examples of how Internet and other
information technologies support business
processes within the business functions of
accounting, finance, human resource
management, marketing, and production and
operations management.
7-2
Learning Objectives
 Identify the following cross-functional
enterprise systems, and give examples of how
they can provide significant business value to a
company:
 Transaction processing system

 Enterprise collaboration system
 Enterprise application integration
7-3
Section 1
Functional Business Systems
7-4
I. Introduction
IT in Business – some IS support specific

business functions
7-5
I. Introduction
Functional Business IS Support Major
Functional Areas
7-6
II. Marketing Systems
IS that aid in planning, promotions and

sale of existing products in existing
markets
Interactive Marketing – customer-focused
two-way transactions between a firm and
its (potential) customers
Sales Force Automation – connect the sales
force to the Internet, intranets, and
extranets
7-7
 Targeted Marketing – advertising/promotion

concept that includes:
 Community – the group of people interested in
the product
 Content – the message aimed at the community
 Context – relevant/related to the target audience
 Demographic/Psychographic – aimed only at
specific types/classes of people
 Online Behavior – track a person’s online
behavior so the advertising can be targeted to
the individual
7-8
Marketing IS
Support Major
Components of the
Marketing Function
Major Components
of Targeted
Marketing
7-9
III. Manufacturing Systems
 Support the production/operations function

 Computer-Integrated Manufacturing
Goal: to create flexible, agile, manufacturing
processes that efficiently produce highest quality
products
3 Objectives:
Simplify (reengineer) production processes
Automate – with computers, machines, robots
Integrate – tie together all production and support
processes with networks, cross-functional software,
and other IT
7-10
 Computer-Aided Manufacturing – automate

the production process
 Manufacturing Execution Systems –monitor
performance
 Process Control – control ongoing physical
processes
 Machine Control – use of computers to control
machines
7-11
Manufacturing IS Support Computer-
Integrated manufacturing
7-12
IV. Human Resource Systems
 Human Resource Information Systems (HRIS)

support:
 Planning to meet personnel needs
 Development employee to their full potential
 Control personnel policies and programs
 HRM and the Internet – Internet is a major
force for change in HRM
 HRM and Corporate Intranets – Intranets allow
firms to provide services to customers and
employees
7-13
IV. Human Resource Systems
7-14
V. Accounting Systems
 The oldest and most widely used IS in

business; emphasize legal/historical record
keeping accurate financial statements
 6 operational accounting systems:
 Order Processing – capture/process orders, create
data for inventory control and accounts receivable
 Inventory Control – process data reflecting changes
in inventory, provides shipping/reorder information
 Accounts Receivable – record amounts owed by
customers, produce customer invoices/statements
and credit management reports
7-15
 6 operational systems:
 Accounts Payable – record purchases from,
amounts owed to, and payments to suppliers, and
produce cash management reports
 Payroll – record employee work and compensation
data, produce paychecks and payroll documents
 General Ledger – consolidate data from other
accounting systems, produce periodic financial
statements and reports
 Online Accounting Systems – interactive, directly

involved in processing business transactions
7-16
Note How Accounting Systems Are
Related to Each Other
7-17
VI. Financial Management Systems
 Support decisions concerning:
 Financing a business – determine financing needs
 Allocation and control of financial resources
 Capital Budgeting – evaluate profitability and financial

impact of proposed capital expenditures
 Financial Planning – evaluate present and projected

financial performance
7-18
Section 2
E-Business Systems
7-19
I. Introduction
e-business is much broader than e-

commerce, using the Internet for any
type of business activity
7-20
II. Transaction Processing Systems
Handles/records daily business activities

(transactions)
 Transaction – anything that occurs during
daily business of which a record must be
kept
 Online transaction Processing Systems –
capture and process transactions
immediately, in real time
7-21
Transaction Processing Cycle – 5

activities:
Data Entry – capture business data
Transaction Processing
Batch Processing – record data, the process it
periodically in “batches”
Real-time (Online) Processing – capture and
process the data immediately after it occurs
7-22
Database Maintenance – Databases

must be updated so they are always
correct and up-to-date
Document and Report Generation – T-P
systems produce a variety of reports
Inquiry Processing – users may query
and receive reports about transactions
7-23
The Transaction Processing Cycle
7-24
III. Enterprise Collaboration Systems (ECS)
Cross-functional IS help users to:

Communicate – share information
Coordinate – organize work efforts and
resources
Collaborate – work together on projects
7-25
Tools for Enterprise Collaboration

Electronic Communication Tools
e-Mail
Instant Messaging
Voice Mail
Faxing
Web Publishing
Paging
7-26

Electronic Conferencing Tools
Data Conferencing
Voice Conferencing
Videoconferencing
Discussion Forums
Chat Systems
Electronic Meeting Systems
7-27

Collaborative Work Management Tools
Calendaring and Scheduling
Task and Project Management
Workflow Systems
Document Sharing
Knowledge Management
7-28
Electronic Tools Enhance Enterprise
Collaboration
7-29
IV. Enterprise Application Integration
Connects e-business applications;

integrates front-office and back-office
applications
7-30
V. Cross-Functional Enterprise Applications
Reengineer/improve business activities

by crossing boundaries of traditional
business functions
Enterprise Application Architecture –
overview of major cross-functional
enterprise applications and their
interrelationships
7-31
The New Product Development Process
7-32
Interrelationships of Cross-Functional
Enterprise Applications
7-33

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Chapter 7

 Transaction processing system

IT in Business – some IS support specific

IS that aid in planning, promotions and

 Targeted Marketing – advertising/promotion

 Support the production/operations function

 Computer-Aided Manufacturing – automate

 Human Resource Information Systems (HRIS)

 The oldest and most widely used IS in

 Online Accounting Systems – interactive, directly

 Capital Budgeting – evaluate profitability and financial

 Financial Planning – evaluate present and projected

e-business is much broader than e-

Handles/records daily business activities

Transaction Processing Cycle – 5

Database Maintenance – Databases

Cross-functional IS help users to:

Tools for Enterprise Collaboration

Tools for Enterprise Collaboration

Tools for Enterprise Collaboration

Connects e-business applications;

Reengineer/improve business activities

The New Product Development Process

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